Taiwan stocks a day's work in vain! TSMC, UMC rally late, index swings over 700 points to close up 25

Taiwan's stock market saw a day of dramatic swings, ultimately closing with a modest gain after a volatile trading session. The index fluctuated by over 700 points, reflecting significant investor uncertainty and sector-specific movements.

Opening higher, the market was initially buoyed by gains in semiconductors, intellectual property, AI, and optoelectronics stocks, supported by traditional sectors like plastics and steel. However, a sharp downturn in major chipmakers, including TSMC, UMC, Powerchip, and Nanya Technology, led to a broad sell-off. GlobalWafers plunged to its lower limit, dragging the semiconductor sector into negative territory.

The index at one point fell by 485 points, erasing earlier gains. Investor sentiment soured as selling pressure mounted in financial and electronics sectors. However, a late rally, driven by heavyweight stocks such as Hon Hai, Wistron, and Inventec, along with renewed buying interest in TSMC and UMC, helped the market recover.

TSMC, a key bellwether, managed to turn positive by the end of the session, closing up NT$5 at NT$2,405. Other notable movers included MediaTek, which gained NT$25 to close at NT$3,875. The overall market closed up 25.03 points at 44,850.81 points, with a substantial trading volume of NT$892.5 billion.